Global Cobalt (CVE:GCO) (OTCBB:GLBCF) has raised C$149,500 after closing the first tranche, 2,990,000 units at a price of $0.05 each, out of a total of up to 5,000,000 units, or C$250,000, of a non-bordered private placement first announced on April 27.
Each Unit consists of one Global Cobalt common share and one common share purchase warrant entitling the holder to acquire an additional common share of the Company for a period of 24 months following the Closing Date at an exercise price of $0.07 per Warrant Share.
The company plans to use funds to complete the spin-out plan first announced last April 7, whereby it will split its Russian and North American operations forming two separately listed companies as part of a major reorganization.
"This substantial investment by the management team of Global Cobalt in the financing is a strong endorsement for the Transaction moving forward," said Global Cobalt’s President and CEO, Erin Chutter.
In a statement, Global Cobalt also clarified that as part of the Plan of Arrangement Transaction, before the effective date to be set at the conclusion of the transaction subsequent to the Annual General Special Meeting, shareholders of Global Cobalt will be eligible to receive equal securities in SpinCo.
Global Cobalt's Werner Lake property (the "Ontario Property") and the Iron Creek property (the "Idaho Property") and associated technical data will be transferred to SpinCo in consideration for common shares of SpinCo having a market value equal to the aggregate value of the Ontario Property and the Idaho Property.
Global Cobalt has focused on becoming a consolidator in the cobalt market, prioritizing development funding at the project level, not just at the corporate level, to minimize shareholder dilution while rebuilding value.